Comments From Annual Pension Plan Summary

I believe the summary document includes both management and represented employees but not sure.

Employees in the plan
2024 92,900 -7.5%
2023 100,700 -6.9%
2022 107,859
2022-2024 -14,959 -13.9%

Total Employees (Internet)
2024 141,000 -19,700 -12.3%
2023 160,700 -42,300 -20.8%
2022 203,000
2022-2024 -62,000 -30.5%

Percent Employees in plan

2024 65.9%
2023 62.5%
2022 53.2%

Annual 2024 return on plan assets 1.4%. S&P 500 up 25%. Even with private equity mix in portfolio that is not updated this is terrible! Money market funds yielded ~ 5% in 2024. Fire the CFO not praise him like JS does.
Since the plan has been frozen participants are older employees - they are hanging tough - smaller reduction than overall employee base. Younger employees leaving and not being replaced 1:1.
It looks like about 98,000 plan particiants were either moved to the third party insurance company or were cashed out in 2023.
Pension is under funded and in slight decline as a percent of liabilities.
My guess is that JS is about half way - another 40,000 employee reduction to get to under 100,000.

Thoughts and comments welcome! What say you?

Comment! It's anonymous!

7 replies (most recent on top)

We need to freeze the pension program and move on. What we're doing right now isn't equitable to the diverse employee base hired over the last 10 years.

The 100K employee target seems about right since VZ is doing $12B more in revenue annually with around 100K employees.

They haven’t offered a pension plan to non-union new hires in 10 years. That’s a big part of those decreases. I can predict next year the employee numbers will be 5-8% lower again and the year after that and after that.

To sell a pension fund to athene it must be funded 100%. So to spin off 20% of current retirees on annuity you have to take from the 80%. That’s why the funded ratio fell. When interest rates rise, funded ratio should improve. It didn’t

As long as the company is highly profitable they have to make up any shortfall. Doesn’t matter how underfunded it is when they have multi billion dollar profits every quarter. They have the means to fund it and they are required to fund it by law.

Could you provide a link for the Annual Pension Plan Summary? I'd be interested in looking at it.

I don’t know if it means anything, but I did see for the previous quarter. The pension was no longer fully funded to cover all associated obligations and with the current tanking of the market , treasury yields bouncing around ,dollar and bond market being sold off , I have to wonder how does that further Impact the pension balance?

Thread regarding AT&T layoffs

Comments From Annual Pension Plan Summary

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